Whilst still Exchequer Secretary to the Treasury David Gauke (now Financial Secretary to the Treasury since David Cameron's reshuffle) has reaffirmed government support for the VCT sector.
Writing in the government’s consultation on tax-advantaged venture capital schemes last week, he said: “The government is committed to ensuring that these flagship schemes continue to incentivise investment into smaller higher-risk companies that are essential for growth in the UK”.
The consultation will consider the impact of recent government reforms and consider where improvements can be made to ensure the schemes continue to work well.
Ian Sayers, Director General, Association of Investment Companies, said:
“Our research has shown that VCTs continue to deliver the goal sought by government – with 85% of VCT investments in the government’s priority area.
“The government recognises that VCTs provide invaluable support for SMEs. These benefits have been acknowledged across the political spectrum and we hope will ensure continued cross-party support for these schemes.”
The AIC recently published a survey of the VCT sector Going for Growth: VCT investment 1997 – 2013 which demonstrated that VCT investment delivers jobs, with 80% of investee companies seeing a growth in employment after VCT investment. Turnover has grown, too, with an average increase of £9.8m per company following VCT investment.